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<br />in a designated buffer tube, and pulled into two separate entry points at each of the buildings in a <br />backbone architecture and terminated in the building at a location specified by the City. If Grande <br />removes Grande's facilities at any time and for any reason, Grande will take all steps necessary to ensure <br />that the City's fiber optic cable for the locations on Exhibit B is either left in place, or is replaced. The <br />fiber optic cable for the buildings on Exhibit C must be 12 strands, pulled into one entry point at each <br />building, and terminated at a location specified by the City. The routing and entry points for the fiber <br />optic cable will be subject to approval by the City. Grande will also connect, through star connections <br />or subring connections to the City's main backbone fiber optic cable, the City facilities specified on the <br />attached Exhibit C by the startup date at no cost to the City. If Grande begins the installation or use of <br />any significant improvements in technology in Grande's Facilities before Grande begins construction <br />of the fiber optic cable connecting the City locations, the City may direct Grande to install facilities and <br />equipment using the improved technology (the "Updated Facilities"), rather than the fiber optic cable, <br />star connections or subring connections, to connect the City's locations. As the City acquires or <br />constructs new facilities, Grande will add fiber optic backbone and star or subring connections, or <br />Updated Facilities as directed by the City, to the new facilities at the City's request at no cost to the City. <br />Grande will provide maintenance of all fiber optic cabling and of all Updated Facilities provided under <br />this Section 5.E at the City's request and at no cost to the City. This maintenance will include, without <br />limitation, two hour response time on all calls for service related to the facilities serving the buildings <br />identified on Exhibit B, and four hour response time on all calls for service related to the facilities <br />serving the buildings identified on Exhibit C. <br /> <br />F. Grande acknowledges that all services and facilities provided by Grande under this section are for <br />the benefit of all customers and the public, and are not part of the compensation to be paid to the City <br />under Section 12, and are not payments in kind chargeable against the compensation to be paid to the <br />City under Section 12. <br /> <br />Section 7. Promulgation of Rules by Grande; Refunds. <br /> <br />A. Grande may promulgate rules, regulations, terms and conditions governing the conduct of its <br />business. These rules, regulations, terms and conditions must be reasonable and must not conflict with <br />the terms of this Agreement or the charter, ordinances, regulations or policies of the City, the State of <br />Texas or the United States. <br /> <br />B. Grande will make appropriate credits or refunds to customers for periods when Grande's facilities <br />undergo a significant service interruption and in other circumstances in which Grande's services are not <br />of the highest quality. <br /> <br />Section 8. Conditions on Occupancy of City Right-of-Way. <br /> <br />A. Grande will submit plans for any change in Grande's facilities in City right-of-way, including but <br />not limited to changes in the location of facilities and the extension or construction of new facilities, to <br />the City Manager's designated representative at least five days prior to the start of construction of the <br />change. Grande will not begin construction of the change without first obtaining the approval of the plan <br />by the City Manager's designated representative. These requirements do not apply to bona fide <br />emergency repairs. Grande will provide immediate verbal notice to the City Manager's designated <br />representative of any excavation performed within a City right-of-way in connection with an emergency <br />repaIr . <br /> <br />B. Grande may use the poles of the City Electric Utility Department only if Grande executes a separate <br />license agreement with the City. <br /> <br />C. Grande will not place Grande's facilities where they will interfere with the existing lines, equipment <br />or fixtures of any water, wastewater, gas, electric, cable television or telephone utility, or with drainage, <br />in a City right-of-way. Grande will place any poles, equipment and fixtures set by it in any street or aHey <br />at the outer edge of the sidewalk and as close as practicable to the boundary of the street or alley, and <br />in a manner that does not interfere with vehicle or pedestrian travel on streets, alleys and rights-of-way. <br /> <br />D. In City right-of-way where electric and telephone service lines are routed underground, Grande will <br />route its lines underground. <br /> <br />E. When Grande or its contractors, agents or employees disturb any pavement, sidewalk, driveway or <br />other improved surfacing in City rights-of-way, Grande will replace and restore the surfacing throughout <br /> <br />C:\TEMP\Grande Franchise final.doc <br /> <br />5 <br />